Solutions to build and develop Thanh Nghia brand in the garment field of Thanh Nghia Company Limited = Phát triển dịch vụ phi tín dụng tại ngân hàng thương mại cổ phần kỹ thương Việt Nam

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - LÊ LINH CHI SOLUTIONS TO BUILD AND DEVELOP THANH NGHIA BRAND IN THE GARMENT FIELD OF THANH NGHIA LIMITED COMPANY GIẢI PHÁP XÂY DỰNG VÀ PHÁT TRIỂN THƯƠNG HIỆU THÀNH NGHĨA TRONG LĨNH VỰC MAY MẶC CỦA CÔNG TY TNHH THÀNH NGHĨA LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - LÊ LINH CHI SOLUTIONS TO BUILD AND DEVELOP THANH NGHIA BRAND IN THE GARMENT FIELD OF THANH NGHIA LIMITED COMPANY GIẢI PHÁP XÂY DỰNG VÀ PHÁT TRIỂN THƯƠNG HIỆU THÀNH NGHĨA TRONG LĨNH VỰC MAY MẶC CỦA CÔNG TY TNHH THÀNH NGHĨA Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM VĂN HỒNG HÀ NỘI - 2019 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration Date………………………… ACKNOWLEDGEMENTS I would like to express my deepest gratitude to all of the following people for helping me complete my thesis Firstly, I would like to express my special thanks to my company for giving favorable conditions for my study and my master thesis completion at Hanoi school of business and management (HSB) Secondly, I am extremely grateful to all of the lecturers from the Department of Business Administration - HSB for providing me with research methods and professional knowledge during the course, especially the active and creative research skills My appreciation also goes to the teachers in the thesis review committee for giving me valuable ideas during my thesis completion process My profound gratitude is also conveyed to my instructor for his helpful assistance and guidance This thesis could have never been completed without his enthusiastic counsel and support Despite the efforts during the research period, there are still many limitations in the thesis I would hope to receive valuable comments from the teachers and co-workers to make this essay more complete Thank you very much./ Ha Noi, 2019 TABLE OF CONTENTS ACKNOWLEDGEMENTS TABLE OF CONTENTS LIST OF ABBREVIATIONS i LIST OF TABLES ii LIST OF CHARTS AND FIGURES .iii INTRODUCTION 1 Rationale of the study Literature review Research objectives Research object and research scope Research methods 6 Contributions of the thesis Organization of the thesis CHAPTER 1: THEORETICAL FRAMEWORK ON BRAND, BUILDING AND DEVELOPING BRAND 1.1 Overview of brand 1.1.1 Concept of brand 1.1.2 Types of brand 10 1.1.3 Roles of brand 12 1.2 Branding and brand development 15 1.2.1 Concept of branding and brand development 15 1.2.2 Contents of branding and brand development 15 1.2.3 Factors affecting branding and brand development 25 CHAPTER 2: REALITY OF BRANDING AND DEVELOPING THANH NGHIA BRAND OF THANH NGHIA CO., LTD 28 2.1 Introduction of Thanh Nghia Co., Ltd 28 2.1.1 Process of foundation and development 28 2.1.2 Production process 29 2.1.3 Organizational structure 29 2.1.3 Business results 31 2.2 Reality of branding and developing Thanh Nghia Brand of Thanh Nghia Co., Ltd 38 2.2.1 Identifying the vision and mission of Thanh Nghia brand 38 2.2.2 Positioning Thanh Nghia brand in the market 39 2.2.3 Identifying the identity system of Thanh Nghia brand 42 2.2.4 Organizing marketing and communication activities to promote Thanh Nghia brand 45 2.2.5 Evaluating Thanh Nghia brand 52 2.2.6 Protecting Thanh Nghia brand 55 2.3 Evaluation of branding and developing Thanh Nghia brand 56 2.3.1 Achievements 56 2.3.2 Limitations and causes 57 CHAPTER 3: SOLUTIONS TO DEVELOP THANH NGHIA BRAND IN THE GARMENT FIELD OF THANH NGHIA CO., LTD 60 3.1 Orientations in business development and orientations in developing Thanh Nghia brand 60 3.1.1 General development orientations of Thanh Nghia Co., Ltd 60 3.1.2 Orientations in developing Thanh Nghia brand 62 3.2 Solutions to develop Thanh Nghia brand 63 3.2.1 Building a brand positioning strategy 63 3.2.2 Completing the brand recognition system and improving the value of products for customers 65 3.2.3 Completing marketing and communication activities 66 3.2.4 Registration for brand and industrial design protection inland and abroad 71 3.2.5 Establishing a department specializing in branding and raising awareness of brand for employees in the company 72 3.3 Recommendations 73 CONCLUSION 76 REFERENCES 78 APPENDIX 80 LIST OF ABBREVIATIONS Abbreviation Full form Co., Ltd Company Limited i LIST OF TABLES Table 2.1: Business results of Thanh Nghia Co., Ltd 32 Table 2.2: System of machinery and equipment 34 Table 2.3: Vision and mission of Thanh Nghia Co., Ltd 38 Table 2.4: Target customers and market positioning 41 Table 2.5: Recognition system of some brands 43 Table 2.6: Basis for price calculation 45 Table 2.7: Payment discount policy of the company 46 Table 2.8: Annual change in the average price of the company 47 Table 2.9: Revenue structure of the company’s product 50 Table 2.10: Customers’ evaluation on Thanh Nghia textile and garment products 53 ii LIST OF CHARTS AND FIGURES Chart 2.1: Main market of the company 37 Chart 2.2: Costs for online marketing activities of the company 51 Chart 2.3: Results of survey with customers on level of brand recognition 52 iii INTRODUCTION Rationale of the study The building, developing and maintaining of the brand value have been studied by enterprises around the world since the 1970s of the 20th century Brand is an intangible asset of great value to enterprises, bringing stability, developing market share and enhancing competitive advantages of enterprises in the increasingly competitive market In the current process of integration into the world economy, enterprises and state management agencies of Vietnam have begun showing concern about the issue of brand building and development Many Vietnamese businesses have been aware that in addition to efforts in improving and perfecting the quality of their products, services, packaging specifications and logos, brand elements, if designed properly in line with customers’ mind will be improve the competitiveness of the products Building and developing the brand for garment products are also particularly important when our country's textile and garment market is having rapid growth with a very high annual growth rate (average growth rate of 30% per year) In particular, in the context where the CPTPP agreement is signed and take effective from the end of 2018, the building and development of brand for garment enterprises are important for the development of the economy Thanh Nghia Co., Ltd is also one of the enterprises operating in the field of textiles and garments The company was established in 2003 with the main products including high quality knitwear such as pants, shirts, hats and wool scarves The products are completely handcrafted or are made with modern technology and exported to the markets of Poland, Czech Republic, Hungary, Germany, Italy, United Kingdom and the USA At present, the production capacity and management level of the company is quite high The company has met big orders with competitive prices and accurate delivery time, which needs many samples of goods under its ownership The company needs to maintain and improve the goods that has been successful and has been gaining prestige in the market Besides, the company should introduce new products to complement its structure of goods and better serve the increasing demand of customers Since the company specializes in producing export goods, beautiful designs and good materials are not enough The production process must also ensure the quality standards, especially the standards on safety and hygiene This is one of the standards that consumers in the US and EU market are very concerned because it directly affects their health Therefore, the company needs to develop a "clean" and safe production process 3.2.3.1 Building a reasonable pricing strategy Good quality products at low prices are what every customer expects The prices of the goods are sometimes a more effective tool for competition than the quality of goods, especially in the textile and garment industry where the quality of goods among enterprises in the market is not very different When building the pricing strategy, the company must be very careful and should not misuse the price because it is "double-edged sword" In addition, the company also needs to pay attention to production costs as well as the psychology of customers Another issue that should be noticed is that when building the pricing strategy, the company needs to consider whether the prices that the company offers violate the anti-dumping law or not Vietnam's economy has not been recognized as a market economy, but the prices are determined by the prices of a market economy country This causes great disadvantages for the company in particular and enterprises in Vietnam in general As a company that both produces and processes products, the company’s types of customers are various with different characteristics In order to offer 68 a reasonable pricing strategy, the company has to pay attention to not only the production costs but also the research of market, customer psychology and the pricing strategies of competitors Another important point in building the company's price strategy is to lower the production costs Currently, the company's materials are mainly imported at very high prices As a result, even if our labor prices are low, the production costs are still higher than other countries, especially China One of the solutions that should be implemented in the pricing strategy is to reduce the production costs by localizing high-end products by searching for domestic raw materials to reducing costs in a reasonable way 3.2.3.3 Conducting brand communication activities At present, the promotion of the company’s products and brand does not really match the potentials of the company In the coming time, in order to build and develop its brand, it is necessary for the company to promote the brand communication The company can apply some of the following ways: + Participate in trade fairs in different countries: Trade fairs are places where enterprises can introduce their products and search for large customers The company should actively look for fairs to register for participation rather than wait for fairs in foreign countries that are held by the State + Promotion by the Internet: Nowadays, the Internet is an effective tool for enterprises to advertise their products and find new customers, especially for an export company like Thanh Nghia Co., Ltd The company's website is now available, but too simple and unattractive In the coming time, the company should improve its website and put more product images on the website Apart from participating in the website of the Vietnam Textile and Garment Corporation, the company should also participate in other websites such as www.dddn.com, www.doanhnghiep.com, www.thuonghieuviet.com, etc in order to promote its brand more widely 69 + Promotion by catalogs, leaflets: The catalogs of the company are currently not eye-catching In order to create awareness and attract customers easily, the company needs to redesign its catalogs with more products and more impressive colors The cost for making the catalogs is quite high, so they can only be sent to customers and prospective customers but not to all intermediaries and consumers As a result, the promotion of the company’s brand is not wide and effective Another solution is to use leaflets Leaflets have low cost and can be made in large quantities to distribute in the markets that the company chooses as its target market However, it should be noticed that leaflets usually have less information than catalogs, so they must be designed in a good way to attract customers + Promotion on media such as newspapers, radio and television: This is an effective solution for enterprises The company can introduce its products through the local advertising channels where the company sells its products 3.2.3.4 Enhance customer service Nowadays, having good products with reasonable prices is not actually a competitive advantage because with the current development of science and technology, any textile and garment manufacturer can it In order to outperform its competitors, the company needs to improve its customer service As an enterprise with different types of customers including direct consumers and intermediaries, what the company needs to to improve its customer service is:  Classify customers  Solve the problems of customers quickly and reasonably  Check the goods carefully before delivery  When there are problems with the goods, try to find ways to solve the problems 70  Study the production plan, production capacity and orders carefully so that the goods are delivered on time at the right location; ensure the quantity and quality required 3.2.4 Registration for brand and industrial design protection inland and abroad Currently, the registration for brand and industrial design protection inland and abroad is easier than before The company needs to complete the application documents and send them to the National Office of Intellectual Property at 384-386 Nguyen Trai Street, Thanh Xuan District, Hanoi Registration for brand protection will be handled within six months Registration registration for industrial design protection takes nine months and registration for invention protection takes 12 months Fees will depend on the types of protection certificates granted under the guidance of the Ministry of Finance Another notice is that when applying for industrial design protection, enterprises can only register for a design each time Therefore, before registering, enterprises need to carefully consider whether to register or not, where to register to have the most benefits They should not register in markets that they can not reach because the high cost of registration will cause waste of money and time When registering for brand or industrial design protection, the company needs to identify its market to learn about the country's property laws The company also needs to identify its market to find out in which intellectual property system the target market belongs to so that it can register for brand protection under that system For example, if the target market in the future is EU where countries participate in the Madrid agreement (our country is also a member) Registration in groups as European community or under international treaties, the protection has a broader scope By registering in this 71 way, the brand of the company will be recognized in all 27 European countries without having to register in all participating countries The US is one of the company’s customers The US does not participate in international treaties on intellectual property and is not a member of Manrid Therefore, enterprises that wish to apply for brand protection here must register directly This means that the company does the registration by itself or has its trade representative in the US that 3.2.5 Establishing a department specializing in branding and raising awareness of brand for employees in the company The formation of a department specializing in branding in the company is very necessary However, this is impossible in the current situation of the company With current conditions, the company may assign a number of staff from an existing department of the company such as the Market Planning Department to take responsibility for building and developing the company’s brand These staff will study and propose plans for brand building and development and implement these plans However, the building and development of the company’s brand can not be carried out by a department or a few individuals It it must be the effort of all employees in the company Humans are the central element in the building and development of Thanh Nghia garment brand in particular and the company in general To build a strong brand, employees must be aware of it and see the benefits that it brings to the enterprise Each member of the company, especially the management must be equipped with the basic knowledge of brand, vital role and position of the brand and basic skills in building and managing brand, etc It is difficult to implement training about the brand for all employees, but the knowledge of brand can be integrated into the activities of the company and activities of each department in the company The staff should know that their 72 efforts in fulfilling their assigned tasks also contribute to the building and development of the company's brand and this in turn benefits them In addition, the company can hold meetings or competitions on building and developing brand among employees to raise their awareness of the building, protection and development of the company's brand This will not only stimulate their creativity but also be effective in finding ways for building and developing the brand from employees 3.3 Recommendations + Building a complete legal system One of the top concerns of enterprises is the lack of accuracy, overlapping and clarity of the legal system Therefore, building a clear, accurate and effective legal system what Vietnamese enterprises expect the government to implement soon The State needs to further improve its procedures for brand protection registration, and reform the judicial system so that the procedures are carried out quickly and effectively, especially the policies in addressing complaints of industrial property infringement The government should set up standing department specializing in receiving complaints about industrial property rights and counterfeit goods For some items with specific characteristics like garment that need continuous changes in designs, the government should study and propose separate regulations which are faster, more flexible for design and brand registration to create favorable conditions for enterprises in the industry Only in this way can the registration for brand protection be possible + Strictly punishing infringements of intellectual property rights According to the current regulations, the penalties for brand infringement are only from to 10 million VND The highest penalty can be 100 million VND, but the actual fine is only 20 million, a very small amount 73 compared to the consequences of brand theft Therefore, in the coming time, the authorities should take tougher measures in penalties related to the brand + Organizing effective communication channels to enterprises In the present time, information is a vital factor for enterprises However, the channels of trade information in our country are not effective and the price for buying in-depth information is high, so it is not attractive to enterprises At present, on the internet system, there are many websites on the brand issues such as thuonghieuviet.com, lantabrand.com, noip.gov.vn, etc but no websites or authorities provide enterprises with information about the agreements and treaties on brand that have been signed with countries and organizations Even the provision of information on registered trademarks, designs and models to avoid duplication has not been carried out It can be said that the current urgent issue for the authorities is to increase the operation of trade information channels so that they operate effectively and provide enterprises with necessary information in time Namely:  The State should support the above websites to make them more complete and better serve information needs  Every year, the National Office of Industrial Property should have the same notice as the yearbook to publish all the brands, designs and models which are registered in that year  The State should seek appropriate measures to facilitate enterprises to set up their own information channel through their representative  The State should support enterprises in international litigation + Improving the level of officials in appropriate authorities The level of officials in executing agencies is also the main reason making the enforcement of industrial property rights in general and the brand 74 ownership in particular ineffective Therefore, it is crucial to improve the level as well as the professional ethics of officials in appropriate authorities The State needs to recruit staff with high qualifications and set out standards that the staff needs to meet in their positions and duties Then it is necessary to regularly improve their qualifications by organizing professional training courses The factor of career ethics also needs to be concerned In addition to professional improvement, the State should also pay attention to the life of employees and have an appropriate reward policy in order to enhance their sense of responsibility in their work, prevent corrupt officials from associating with criminals who make counterfeit goods or encourage their spirits so that they will be more devoted to the profession 75 CONCLUSION In the past few years, the changes in business environment have shown that the competition in the market is becoming more and more fierce Finding ways to attract customers to choose their products is a problem that enterprises have to solve As a result, enterprises use a lot of measures to achieve the top position in the mind of customers One of the most frequently mentioned solutions in the past few years was the branding of goods for enterprises Nowadays, when our country has become a member of the World Trade Organization and signed the CPTPP agreement and our economy has gradually been improving, the problem of building and developing corporate brand has become imperative With the desire to raise the awareness of Thanh Nghia Co on the issue of branding and brand development in the present time, the results of research topics have shown the following contents: + Systematize the theories of brand and activities of branding and brand development of enterprises + Based on the systematization of theoretical framework and the documents collected, the thesis has analyzed of the reality of building and developing brand at Thanh Nghia Co., Ltd + Based on the analysis of reality as well as advantages and disadvantages in building and developing brand of Thanh Nghia Co., Ltd, the thesis proposed solutions for building and developing Thanh Nghia garment brand It can be seen that the research objectives mentioned in the first part of the thesis have been achieved However, the thesis still lacks in-depth analysis and accurate assessment of the activities of building and developing Thanh Nghia garment brand Some of the research contents could not be conducted since the company's customers were mainly overseas clients, which also affected the quality of the thesis 76 The thesis was the efforts of the author during the time of conducting research However, due to the author’s limited knowledge and research ability, the limitations were inevitable The author looks forward to receiving the comments from teachers, friends and co-workers so that the thesis can be more complete 77 REFERENCES Duong Ngoc Dung & Phan Dinh Quyen (2005), Brand positioning, Statistical Publishing House James R Gregory (2004), Strong and Successful Branding, Statistical Publishing House Duong Huu Hanh (2005), Brand Asset Management, Statistical Publishing House Nguyen Thanh Hoi & Phan Thang (2001), Management, Statistical Publishing House Ho Duc Hung (2005), Corporate Management Methodology, University of Economics Ho Chi Minh City Ho Duc Hung (2000), Comprehensive Corporate Management, Ho Chi Minh City National University Publishing House Philip Kotler (2003), Marketing Management, Ho Chi Minh City Statistical Publishing House Philip Koler (2007), Discussing Marketing, Ho Chi Minh City Youth Publishing House Pham Xuan Lan (2005), Strategy Management, University of Economics Ho Chi Minh City 10 Le Dang Lang (2010), Brand Management, Ho Chi Minh City National University Publishing House 11 Patricia F Nicolino (2001), Quản trị thương hiệu, Nxb Lao động – Xã hội Patricia F Nicolino (2001), Brand Management, Labor and Social Publishing House 12 Bui Van Quang (2015), Brand management - Theory and practice, Labor and Social Publishing House 13 Phung Viet Quang (2013), Developing Viglacera brand - Viglacera Corporation, Master Thesis in Business Administration, The University of Da Nang 78 14 Doan Van Sinh (2013), "Developing Petrolimex Gas brand" Master Thesis in Business Administration, The University of Da Nang 15 Nguyen Van Tam (2006), Building Co.opmart brand of Saigon Co.op, Master Thesis in Economics, University of Economics Ho Chi Minh City 16 Nguyen Dinh Tho (2008), Marketing Research, Education Publishing House 17 Huynh Thi Thuong (2014), Branding Goldmilk powdered milk of Van An Production and Trading Co., Ltd, Master Thesis, Hong Bang International University 18 Tran Thanh Toan (2014), Advanced Marketing Management Textbook, Ho Chi Minh City Publishing House 19 Tran Thi Anh Tuyet (2007), Strategies to build and develop the brand for Trong Duc electronics center, Master Thesis, University of Economics Ho Chi Minh City 20 Le Thi Ngoc Trinh (2014), Branding Vinh Tien Notebooks, Master Thesis, Hong Bang International University 79 APPENDIX SURVEY FORMS THANH NGHIA BRAND Dear valued customers, We would like to send our sincere thanks for spending your time on helping us complete this survey Firstly, this survey is carried out with the hope that the results from our customers' feedbacks will help us have orientations in develop Thanh Nghia brand in the garment field in the next period Therefore, please provide accurate information and the most detailed assessments on the contents in this survey The purpose is that the collection and processing of data is more convenient and accurate 80 PART GENERAL INFORMATION Full name:………………………………………………………… Gender: Male  Female Age:  Bellow 30 years old  From 30 to 40 years old  From 40- to 50 years old  Over 50 years old Income  Less than million  From to million  More than million Level  Intermediate  College  University  Postgraduate Occupation  Officer  Business- Entrepreneur  Staffs  Students  Retired Employees  Others Part Please mark “x” in the box where you have the best brand identity: May 10 TNG Viettien Mattana Nhà Bè Thái Sơn Gia Định 10/10 29/3 Vinatex Thành Nghĩa Mai Anh Quỳnh Hoa 81 Part 3: The survey on the characteristics and quality of Thanh Nghia textile and garment products The factors are described as follows: 1: Strongly disagree 2: Disagree 3: Neutral No 4: Agree 5: Strongly agree Level Items Thanh Nghia's image is unique compared to its competitive brands Thanh Nghia brand has high quality products Some characteristics of Thanh Nghia brand come to my mind quickly when it is mentioned I can quickly recognize Thanh Nghia fashion among other brands Thanh Nghia fashion has beautiful designs compared to its competitors Thanh Nghia brand is known by many people Thanh Nghia fashion has good prices for its quality The promotion programs of Thanh Nghia fashion are frequently conducted The probability of choosing Thanh Nghia fashion over other brands is very high 82